PropertyProf Blog

Editor: Stephen Clowney
Univ. of Arkansas, Fayetteville

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Monday, May 20, 2013

Judge Orders Los Angeles BID to Dissolve

A reminder that not everyone loves Business Improvement Districts:

A Los Angeles Superior Court judge has ordered the Arts District Business Improvement District to dissolve, capping a long feud between the entity and a group of property owners. The BID has already halted its privately funded cleaning and safety program in the area.

The May 10 order from Judge Robert H. O’Brien is a victory for a group of Arts District property owners who argued in a lawsuit that the BID broke state law in its formation and therefore is invalid.

O’Brien’s order centered on his finding that the BID spent tax dollars on economic development services that did not provide a special benefit to area property owners.

“Our claim was basically that the constituency in this district is very diverse, and to claim you’re helping both industrial owners and loft owners and residents, there’s no coherent way to have an agenda to help everyone,” said developer Yuval Bar-Zemer, one of the property owners who brought the case against the city.

Steve Clowney

http://lawprofessors.typepad.com/property/2013/05/judge-orders-los-angeles-bid-to-dissolve.html

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